On Friday, March 14, 2003, Susan Kniep, President of FCTO, offered the following testimony to the Legislature on Bills intended to help curb municipal corruption.   Within Item 1, Ms. Kniep stressed the need to limit the time frame an auditor can be retained by a Municipality.    Conflict of interest or ethic laws can curb corruption, but cannot stop it.  There will always be some corrupt or corruptible elected officials.   Taxpayers should therefore be given a guarantee that their books are audited by those who have no unhealthy familiarity with the town officials they are auditing.  

Ms. Kniep’s Testimony Before the State Legislature

 

IMPROVE STATE AND LOCAL ETHIC LAWS

 

Bill 6594: Act Concerning Municipal Ethics, Municipal Whistleblower Protections, and the Investigation of Municipal Corruption; and

Bill 6593: An Act Extending Provisions of the State Code of Ethics for Lobbyists to Municipal Lobbying; and

 

All Bills Affecting Municipal Ethics with the Intent of Prohibiting Corruption 

My name is Susan Kniep and I am President of The Federation of Connecticut Taxpayer Organizations, Inc.   I had previously served as East Hartford's Mayor for four years from 1989 to 1993 and a town council member for eight years, four years as Minority Leader.

I applaud your efforts to stem the tide of corruption within the State and its municipalities.  

 

Corruption, infused with public money, has mired the political landscape in Connecticut for far too long.    The surreptitious deal between Enron and CRRA would probably not have become public knowledge if Enron did not collapse.  This has left many wondering what other clandestine deals bordering on corrupt practices have not yet surfaced in our State or our towns.

 

By imposing strong ethics and conflict of interest laws and providing a reliable system of checks and balances, you can help to protect the interests of the taxpayers you represent.     

As such, I would suggest including the following in your legislation or separate legislation:

 

1.        We must accept the fact that there will be some elected and appointed officials and government employees who are corrupt or can be corrupted regardless of the ethic laws imposed.  As such, a program of operational and procedural audits should be required of municipalities in addition to the financial audit.  Further, auditors hired by a municipality should be limited to no more than a three year contract.  A subsequent five year period should lapse prior to the auditor being allowed to return to that municipality.  This will help to sour the stew of any municipality cooking its books. 

 

2.       Your proposal allowing for a recall of any municipal elected official serving a four year term should instead be reduced to a two-year term of office.  The term of two years is customary for the majority of elected municipal officials.      

3.       Limited Liability Companies should be required to disclose all officers and principals when (1) contracting with the State or a municipality for any product or service or (2) receiving any form of financial support to include tax incentives and/or economic development funding.   

 

4.      Elected or appointed officials or employees of a municipality should be restricted from (1) representing a client before any municipal body or individual employed by the municipality and (2) from representing a client in any law suit involving the municipality.

5.       Ethic and conflict of interest restrictions should be placed upon those "employed" by government under professional service contracts such as architects, engineers, attorneys, and others.     Example:  The Town of East Hartford has no architect on staff.  It has expended approximately $2.5 million in Architectural fees under private contracts.  This includes a long-term on-call architectural professional service contract.    The architect under this contract has the ability to do what a town employee could not.   The architect works for the town and the town's Redevelopment Agency, which, in turn, contracted with a developer who employed the architect through the architect’s private business. 

6.      Close the revolving door through which elected officials leave their municipal office and immediately return as a member of the private sector, reaping financial gains through the sale of products or services.  In other words, restrain influence peddling or door opening.   Example:  The ECS Funding lawsuit originated with the former Mayor of East Hartford.  Four months after leaving office, he encouraged the town to initiate this lawsuit against the State of Connecticut through his law firm.   As you may be aware, East Hartford and other towns which joined this suit had to withdraw as the initial fee within the contract nearly tripled, making it cost prohibitive.   

 

7.       Municipalities should be prohibited from channeling money through a third party.  Example:  The Redevelopment Agency of East Hartford, when purchasing private property, does not pay the seller direct.  The funds are instead paid through an Attorney.   The town possesses no record indicating the numbers of checks cut by the Attorney, the amount paid, or to whom.       

8.      Restrict members of the State's Attorney General's office who concurrently serve as elected officials of a municipality from promoting, initiating, or becoming involved in lawsuits against the State by the municipality.  Example:  The Chairman of East Hartford's Town Council is also an assistant Attorney General.  By his vote and encouragement, the ECS Funding lawsuit was initiated against the State.

7.     Prohibit Board of Education employees who concurrently sit on local legislative boards from promoting or voting on Board of Education budgets.  

Thank you for your consideration.